Chartered Institute of Taxation said that there was a risk that too many amnesties might be counter-productive.
Under the terms of HMRC scheme plumbers with undisclosed tax liabilities have until May to own up or face hefty penalties.
The taxman is to offer plumbers an opportunity to come clean on their tax affairs, outlining a tax "amnesty" for tradesmen.
HM Revenue & Customs today set out what it called the Plumbers Tax Safe Plan – a scheme whereby plumbers can admit to undeclared income and pay a lower penalty than would otherwise apply.
"This is the first step in enabling those with undisclosed income or gains to avoid a full tax investigation with much higher penalties. The message is clear: contact us before we contact you," said Mike Wells, HMRC's director of risk and intelligence.
A plumber who had been hiding income from the taxman would have to pay income tax on those earnings, national insurance contributions, interest going back six years and also a penalty under the scheme – but the penalty is likely to be 10% and a maximum of 20%, rather than the up to 100%, and threat of prosecution, which can apply. Plumbers have until 31 May to take advantage of the scheme.
VAT owed by plumbers will be dealt with "separately", Down said. A spokesman for HMRC said however that a VAT disclosure, while handled separately, would "be part of the PTSP disclosure".
Under the terms of HMRC scheme plumbers with undisclosed tax liabilities have until May to own up or face hefty penalties.
The taxman is to offer plumbers an opportunity to come clean on their tax affairs, outlining a tax "amnesty" for tradesmen.
HM Revenue & Customs today set out what it called the Plumbers Tax Safe Plan – a scheme whereby plumbers can admit to undeclared income and pay a lower penalty than would otherwise apply.
"This is the first step in enabling those with undisclosed income or gains to avoid a full tax investigation with much higher penalties. The message is clear: contact us before we contact you," said Mike Wells, HMRC's director of risk and intelligence.
A plumber who had been hiding income from the taxman would have to pay income tax on those earnings, national insurance contributions, interest going back six years and also a penalty under the scheme – but the penalty is likely to be 10% and a maximum of 20%, rather than the up to 100%, and threat of prosecution, which can apply. Plumbers have until 31 May to take advantage of the scheme.
VAT owed by plumbers will be dealt with "separately", Down said. A spokesman for HMRC said however that a VAT disclosure, while handled separately, would "be part of the PTSP disclosure".
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